Onyx Biotec (ONYX)

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding of 65.10% indicates strong insider alignment with minority shareholders.
• Sales growth of 14.73% and latest quarterly revenue of ₹35 crore show the business still has demand traction.
• ROCE of 12.16% suggests the company is generating a reasonable return on capital employed, at least on the operating side.
• Latest quarter sales of ₹35 crore against a market cap of ₹61 crore means the revenue base is not negligible relative to valuation.

Concerns

• Profit growth of -130.10% with a latest quarterly net loss of ₹1 crore makes the reported P/E of 57.28 unreliable and unattractive.
• Piotroski F-Score of 4/9 points to weak financial health and poor earnings quality.
• Zero dividend yield means investors receive no income while waiting for a recovery.
• Missing book value, ROE, and debt/equity data create a dangerous lack of balance-sheet transparency for a Graham-style investor.
• PEG of 3.89 offers no margin of safety even if one generously uses sales growth as a proxy for earnings growth.

AI Analysis

Let's start with what I don't know: book value, ROE, debt/equity are all absent. As Graham would say, an investment without balance sheet visibility is speculation. Onyx is a small pharma company, market cap ₹61 crore, price ₹34. It grows sales 14.73% and latest quarter revenue is ₹35 crore, so the business is not dormant. But profit growth is minus 130.10% and the latest quarter shows a ₹1 crore net loss. The reported P/E of 57.28 is meaningless when earnings are vanishing; you are paying 57 times a thin rupee of profit before a loss appears. ROCE of 12.16% is decent, but without leverage data we cannot judge how much risk produces that return. Piotroski F-score of 4/9 reinforces weak fundamentals — only four of nine signs point to healthy operations. The zero dividend does not help. Promoter holding of 65.10% is a genuine positive; owners' interests are aligned with minority shareholders. But alignment is not the same as ability. Sales growth is positive, yet profits are not following. That is often a sign of poor pricing power, cost pressure, or reinvestment without returns. There is no margin of safety at this price. A Graham buyer needs a bargain; here the market offers 57 times earnings, negative profit momentum, and missing data. I would not classify this as a quality compounder. It is a turnaround candidate: sales are alive, but profitability must be revived. I would wait for evidence — several quarters of positive net profit, rising margins, and more transparent books — before investing a rupee.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer